TCC Insider

When I was told eight months ago that my new position within The Coral Company was going to be based out of downtown Cleveland, I must admit I was intimidated.  Well, if we're going to be completely honest with each other, I was pretty much scared to death.  Other than the occasional dinner or drink here and there, I hadn't had much of a downtown experience one way or the other.  So, not only was I embarking on a new chapter in my life with a new management company, but I was also tackling downtown Cleveland, where I imagined my days would be filled with horrible traffic, unsociable people who were too busy to look your way and just an overall unpleasant experience.  I have no idea where my fear came from or how I justified it in my mind. 

Eight months later, I am pleased to admit I was wrong.  Dead wrong.  I don't know what I was thinking.  Managing Statler Arms Apartments in downtown has been one of the most rewarding experiences I've had in my career.  There is such a camaraderie with these residents that I've never seen before.  They've opened my eyes to the Theater District, (which is just a few blocks away), Tower City (which, believe it or not, I've never been to), all the great restaurants, all the great entertainment and most impressive is the history behind all these tall buildings and landmarks.

I encourage you to not be mislead as I was.  Come downtown - have a nice dinner, see a show, meet some friends - new and old.  Sure there is some construction and traffic from time to time, but if you look past all that and are open to something new, you'll really enjoy yourself.  But beware, you may enjoy yourself so much that you won't want to leave.  You may even decide to relocate downtown permanently. 

If that's the case, come see me at Statler Arms.  I guarantee we'll find you the perfect home to compliment your perfect evenings.

When I was told eight months ago that my new position within The Coral Company was going to be based out of downtown Cleveland, I must admit I was intimidated.  I've actually never had much experience downtown other than the occasional dinner here and there.

Being the Director of Estimating and Purchasing for The Coral Company, I have recently noticed a large interest in "Green Building" and on Jeff Epstein's February 25^th blog, he talked about our Solon Project and how we are moving in the "Green Building" direction. Everyone may not understand how exactly you build "Green" and take on the LEED concept. Our team at Coral has been intensively gather information and details on LEED and "Green Building". I could go on forever explaining these two topics. 

 

To make it simple, the Three R's summarizes everything - Recycle, Reuse, and Reduce:

·         Recycle consists of using building products that are made from recycled products.  Composite decking, Cellulose Insulation, and Recycled Carpet are all examples.

·         Reuse can be a variety of things. One example is making an irrigation system that is connected to your gutters and downspouts to collect rain water to irrigate your yard and landscaping.  I also found an example of where you could collect the rain water and use it for all toilets being flushed in your home.  These are some of the items HGTV used on their "Green Home".  For information on that go to: www.hgtv.com.

·         The last one is Reduce. When I think of reduce I think of everything I can do to reduce my energy consumption. Using energy star appliances helps reduce energy usage.  Having windows with Low-E to minimize heat escaping your home which decreases the amount of heat your furnace has to put out to keep your house warm and suitable.

 

If you are interested in more information on "Green Building" and LEED visit the U.S. Green Building Council's website @  www.usgbc.org.

if we were to examine the economy of northeast ohio from the points of view of an economist and a marketing guru, we might attempt to identify the "value proposition" that makes our economy unique, attractive to business, & capable of growth.  for most of it's history, cleveland and the region have stood on two economic pillars.  first, the steel industry.  and second, arts & culture.

for most of the last 100 years, the industries critical to our region were those based on the production of steel & products of steel.  during the same time period, cleveland developed an arts & culture community unmatched by similar cities.  the orchestra, art museum, playhouse square, cleveland playhouse, blossom, beck center, community theatre, galleries, and on and on.

cleveland remains distinguished by a strong arts community. what has changed for our region is the industry that leads our growth potential.  today, cleveland boasts a world class health care industry.  along with health care spin-off industries that have the potential to land & thrive in cleveland.

as a region, we ought to invest in those resources that will enhance the two aspects of our economy that are world class and distinguish us [back to the value proposition] from other mature cities in the midwest:  health care and arts & culture.

As CFO of The Coral Company, I have the opportunity to touch many components of our business from day-to-day operational issues to high-level strategic decisions.  Perhaps the two job functions that I enjoy the most are compiling our financial projections (I don't know what I would do without Excel!) and our capital structuring (figuring out the right mix of debt and equity for a project and securing those sources of financing).  The capital structuring portion of my job has certainly become more challenging in the current capital markets environment.  For the most part, only those high quality projects characterized by strong locations, experienced sponsorship and proven tenant demand are able to raise capital.  Further, lenders (who generally comprise the majority of any real estate project's capital structure) are requiring more stringent underwriting (higher debt service coverage, wider spreads, immediate principal amortization) that often translate into lower loan amounts and more equity.  This means that, all else being equal, equity returns will be lower. 

 Notwithstanding the above, we believe that real estate investing remains an attractive opportunity for long-term wealth creation and that the short-term credit conditions should not distract from this.  Real estate is a cyclical business and we are in the midst of one of those cycles.  Opportunities exist in the market for both development and acquisition and good projects can still raise the capital they require.  I believe that several of the projects in our development pipeline satisfy the requirements of quality real estate assets (great locations, our sponsorship, tenant demand) and to bring them to fruition we need to remain disciplined to our business practices of hard work, creativity and integrity. 

I've been working as part of our Solon project team for nearly seven months, and in that time our site plan has been continually evolving.  For those who are not familiar with our Central Park project in Solon, we are designing a 90-acre pedestrian friendly downtown for Solon, with a mixture of retail, business, and residential uses.  We will stop at nothing less than designing a world class project, and our team has been working feverishly for get the site plan just right - I estimate we have been through at least 47 iterations of a plan, and we'll probably be through another 47 before it is all said and done.  Why so many drafts?  For one thing, we (and the Solon community) demand excellence.  In addition, we are balancing numerous interests and considerations.  We need a plan that exemplifies sound urban planning principles, but also acknowledges the practical needs of modern retail and business tenants.  We need a site plan that has enough density to create a true sense of place and downtown, but at the same time addresses the concerns of residents who live near our project about height, noise, light, and traffic.  These considerations occasionally conflict, and as we continue to mold the site plan, we constantly re-evaluate it from every perspective.

One specific planning principle we have been working hard on is creating a site that has both an outward focus and an inward focus.  What does this mean?  Many town center / lifestyle center projects are surrounded by surface parking lots and turn their back on the surrounding community.  This may create a sense of arrival and of place, but it creates a disconnect with what is next door or across the street.  We strongly believe that Central Park should fit into the existing civic fabric of Solon and embrace the community around it, rather than turn its back on it.  Our plan will have buildings and activity that face outward, while at the same time having public space and energy that looks inward.  It will link City Hall and the Solon Arts Center into a civic and cultural park.  When it is done, it should look like it has been there all along.  Creating the right balance of inward and outward energy/focus is a challenge, but as we move on to site plan version 48, 49, 50, and beyond, we will continue to focus on it.

Everyone knows about Wikipedia, the free, open content, community-built encyclopedia that contains over seven million articles on topics from A to Z. Have a question? Consult Wickepdia. Have some knowledge you'd like to share? Enter it into Wickepedia. It's become one of the biggest resources of information on the internet.

I just discovered one for the Real Estate Industry that I wanted to share. New homebuyers, real estate professionals, or anyone who has a question or interest about Real Estate can now consult the brand new Real Estate Wiki.

At first glance it seems to have the makings of a great resource, especially for new home buyers. Topics include, among many:

• How to buy a new home
• Building FAQ's
• The Ins & Outs of Selling your home
• Homes & Lifestyles

Check it out and bookmark it.

Leanne van Beers-Werneke is the Director of Marketing for The Coral Company.

 

We have all seen the headlines: 

"Foreclosures Increase 93% Over The Past 12 Months."

"Interest Rates At An All Time Low."

"Freddie Mac Sees Housing Continuing To Tumble."

"Home Prices Drop Fourth Straight Quarter." 

The only thing for certain, to quote leading business consultant, Tom Peters, "If you're not confused, you're not paying attention!"  Don't worry Tom, we are definitely paying attention, and drawing from the mixed messaged headlines above - we are definitely confused!

So, I ask the million-dollar question that is on everyone's mind: Given the current state of today's housing market, is now a good time to buy?

Well ... according to Jim Cramer's, host of Mad Money on CNBC, controversial interview on The Today Show, it is not a good time to buy.  Cramer shocked America and I am sure received several threats of bodily harm from realtors across the nation when he warned viewers, "Don't you dare buy ... Don't you dare buy now.  You will lose money."

Liz Pulliam, author and personal finance columnist for MSN Money, seems to agree with Cramer.  In her blog A Home Buyers Market? Hardly! Pulliam states that today's homebuyer needs to have nerves of steel - placing blame on tumbling home prices, stiff credit standards, gun-shy lenders, and spooked appraisers.

Yet on the other hand, others such as Jason Mook, a Windermere realtor, disagree with Jim Cramer.  Just check out Mook's blog, Jim Cramer Told Me Not To Buy a Home, and My Mechanic Told Me I Need A Colonoscopy.

The National Association of Realtors also agree, having recently launched a national "Buy Now" campaign stating that with interest rates at an all time low, a large inventory of homes available on the market, and the fact that real estate continues to remain the best investment available - now truly is the best time to buy.

So who is right?  Still confused?  Just remember, as long as you are buying the right home for you, at the right price, and on the right terms - it's always a good time to buy, no matter the state of the market!

 

Stephanie Sturzinger is the Director of Sales and Commercial Leasing Associate for The Coral Company.

I am a Regional Property Manger for The Coral Company, and the Manager of Shaker Square retail district in Cleveland, Ohio. I have been in shopping center management for about 12 years, and have been a devout suburbanite for most of my life. I can say that I have never encountered a property like Shaker Square.

 

Shaker Square is situated in the center of both urban and suburban areas of Cleveland, and is host to all walks of life. The buildings are full of character, and are almost 80 years old. Since I have experience working with today's "lifestyle centers", I know that Shaker Square is the Real Deal - one of the first open-air shopping centers in this country.

 

Being in the midst of it now, I can feel the positive energy being created as more award-winning restaurants and quality tenants are added to the already burgeoning mix of Night and Day.  Shaker Square is emerging as a "place to be" - a destination for dining, shopping, working, and playing - and I'm glad to be a part of it. Suburbanites and City Folk alike would do well to pay us a visit.

 

Check out www.visitshakersquare.com for more about Shaker Square.

One of the most exciting parts of our mixed-use redevelopment project in Solon is the opportunity to create a project that will be a national leader in sustainable design and green building.  With a 90+ acre project site, we can impact a community on a far greater scale than with individual buildings.  Building a green neighborhood improves the overall public health of a community and reduces its impact on the surrounding area.  We plan to create a walkable neighborhood that reduces dependence on cars and promotes a more healthy Solon while being conscious of its impact on the environment. 

Throughout our design process, we have been considering strategies to minimize our carbon footprint - from incorporating high energy-efficiency systems into the buildings to creating green and/or or light-colored roofs that treat stormwater and reduce heat island effects to utilizing recycled materials in construction.  We have been studying the new LEED (Leadership in Energy and Environmental Design) neighborhood development program from the US Green Building Council to identify the ways in which our project can be a model community for sustainable design.   As we continue to move forward, I'll post on some of the key decisions we are making to "green" the project and promote a sustainable Solon.